Financial targets

Edgeware has the following long-term financial objectives, adopted at the Board meeting on 23 January 2020:

Sales growth

Edgeware’s target is to increase recurring revenues by 15 percent annually.

Profitability

Edgeware’s target is to achieve a long-term (more than three years) EBIT margin of more than 10 percent. Edgeware’s target for the short term, the next two years (2020, 2021), is to annually improve EBIT.

Capital structure

Edgeware’s capital structure is to enable a high degree of financial flexibility and provide scope for acquisitions. Edgeware’s target is for net indebtedness to amount to a maximum of two times its EBITDA for the most recent 12-month period.

Dividend policy

Over the coming years, Edgeware’s cash flow will be used to finance its continued development and expansion as well as potential acquisitions, which means that no dividends are expected to be paid.

The financial targets above constitute forward-looking statements. Forward-looking statements are not to be viewed as a guarantee of the Company’s future results or performance, and actual outcomes may differ significantly from the information provided in the forward-looking statements.